On-chain data shows the Bitcoin taker buy/sell ratio is now approaching a crossover with the “1” level, a sign that could be bullish for the crypto’s price.
The Bitcoin Buyer Buy/Sell Ratio is on the Rise and Nearly Reaches 1
A CryptoQuant analyst explained that some signs might indicate that the crypto could be headed for a local top.
The “taker buy/sell ratio” is an indicator that measures the ratio between the Bitcoin long volume and the short volume.
If the value of the metric exceeds one, this means that the current taker volume is larger than the seller volume. This is a sign that the bullish sentiment in the market is strong at the moment.
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The ratio of below one indicates that majority sentiment is bearish, as long as there is more taker-sell volume than long.
Here’s a chart showing the Bitcoin Taker Buy/Sell ratio in the past few months.
Source: CryptoQuant| Source: CryptoQuant
As you can see in the above graph, the Bitcoin taker buy/sell ratio has been rising over the past month and is now approaching a crossover with the “1” level.
In the past, an increase in the indicator’s value above this line has usually been a bullish signal for the crypto’s price.
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Quant also pointed out that volume is on the rise and could soon surpass a positive value. This trend is shown in the chart below.
It seems like Bitcoin volume is increasing in the last few weeks. Source: CryptoQuant| Source: CryptoQuant
Analyst believes these trends (if they keep going and the respective crosses occur) could suggest that Bitcoin prices will soon rise and reach a top local level.
BTC Prices
At the time of writing, Bitcoin’s price floats around $30.3k, up 2% in the last seven days. In the last month, crypto lost 24%.
Below chart displays the trends in coin prices over the last 5 days.
According to TradingView, the price of crypto appears to have risen in the past few days. Source: BTCUSD.| Source: BTCUSD on TradingView
Bitcoin may have gained some momentum above the $30k mark in the last 24 hours, however the overall trend has been one of consolidation over the past few weeks.
At the moment, it’s unclear when the coin may escape this rangebound market and show some real price movement.
Unsplash.com featured image, Charts from TradingView.com and CryptoQuant.com charts